American Guarantee & Liability Insurance Co. v. Chandler Manufacturing Co.

SCHULTZ, Justice.

This appeal presents issues arising from a cooperation clause in a liability insurance policy issued by American Guarantee and Liability Insurance Company (American). A coverage dispute arose as an aftermath of a products liability suit involving a defective battery charger that caused a fire loss. Both the manufacturer, Chandler Manufacturing Co., Inc. (Chandler), and distributor, Maxwell City, Inc. (Maxwell), of the battery charger had a judgment entered against them. On a cross-claim, Maxwell secured a judgment against Chandler for indemnification of the entire loss.…